Tesla Accused of Misleading Customers About Range of Its EVs

Tesla is facing allegations it created a secret team last summer with the goal of suppressing thousands of driving range complaints from its customers.

Diversion Team

The company reportedly created the “Diversion Team” in Las Vegas to cancel as many appointments related to the range as possible. Tesla reportedly did this because its service centres were flooded with appointments from customers. Who had expected a better range based on the company’s advertised estimates and the projections displayed by the cars’ in-dash range meters.

It is claimed Tesla managers told employees from the secret Nevada team they were saving the company about $1,000 for every cancelled appointment. They were also told they were easing the pressure on service centres, some of which had long waits for appointments.

Nevada

Inside the Nevada team’s office, some employees celebrated cancelling service appointments by putting their phones on mute and striking a metal xylophone. Triggering applause from coworkers who sometimes stood on desks. The team often closed hundreds of cases a week and staffers were tracked on their average number of diverted appointments per day.

One of the sources said Tesla recently stopped using its diversion team in Nevada to handle range-related complaints, replacing it with virtual service advisors in an office in Utah.

Customer complaints

Perhaps more surprising is the fact in most cases, the cars likely didn’t even need repair. People familiar with the matter told the news agency. That’s because the customers’ complaints stemmed from Tesla misleading owners with regard to the driving range of their vehicles.

Tesla is accused of hyping the range of its EVs, raising consumer expectations beyond what the cars can actually deliver. According to Reuters interviews with three automotive experts who tested or studied Tesla EVs. The vehicles often fail to achieve their advertised range estimates and the projections provided by their own equipment.

Apparently, this practice started about ten years ago for marketing purposes when Tesla was only selling two vehicles, the two-door Roadster and the Model S.

Rigging

Tesla allegedly rigged its range-estimating software by writing algorithms for the range meter would display optimistic projections. For the distance the vehicle could cover on a single charge, one person familiar with an early design of the software for its in-dash readouts told Reuters.

Then, when the battery fell below 50% of its maximum charge, the algorithm would show drivers more realistic projections for their remaining driving range, this person said.

Safety buffer

To prevent drivers from getting stranded as their predicted range started declining more quickly. Teslas were designed with a “safety buffer,” allowing about 15 miles (24 km) of additional range even after the dash readout showed an empty battery, the source said.

The same source said the directive to give customers optimistic range estimates came from Tesla CEO Elon Musk, who “wanted to show good range numbers when fully charged.”

Both the alleged intentional inflation of in-dash range projections and the alleged creation of its range-complaints diversion team as previously reported. Since these are serious allegations, Reuters asked both Tesla and Elon Musk detailed questions about the issues, but neither replied.

If the allegations against Tesla are true, it would have a number of serious consequences.

• Customer trust would be eroded. Customers who have been misled about the range of their Tesla vehicles would be understandably upset. This could lead to a loss of trust in Tesla. Which could make it more difficult for the company to sell its cars in the future?
• Regulators could take action. If Tesla is found to have misled customers about the range of its vehicles. Regulators could take action against the company. This could include fines, penalties, or even the recall of vehicles.
• Tesla’s reputation could be damaged. A scandal of this magnitude could damage Tesla’s reputation. Which could make it more difficult for the company to attract investors and partners.

Tesla has not yet responded to the allegations, and the company has denied any wrongdoing in the past. However, if the allegations are true. It would be a serious setback for Tesla and could have a significant impact on the company’s future.

Here are some additional consequences could arise if the allegations are true:

• The company could be sued by customers who feel that they have been misled.
• Tesla’s stock price could decline.
• Tesla could face difficulty getting loans or other financial assistance.
• The ability to attract and retain employees could be harmed.

Conclusion

The full impact of the allegations would depend on a number of factors. Including the evidence that is presented and the actions that Tesla takes in response. However, it is clear the allegations could have a significant impact on the company.

 Reuters